ECON2505 Env Econ, SP2016
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#5) one reason the author cites as to why innovation economics offers a more effective framework is ”By combining trading with a price for emitting CO2, cap-and-trade seeks out the most efficient reduction projects within the market, delivering a lowest cost outcome.”
#6) the policy advocated by the IETA is “Compliance flexibility is delivered through the ability to “make or buy”, i.e. to implement a project and make reductions (including selling allowances), or to buy allowances from the market. A tax is unable to replicate the incentive for companies to reduce emissions that a trading system brings. Cap- and-trade delivers a profit-incentive to companies which discover stronger and more effective ways of reducing emissions.” they believe this policy to be effective because Cap-and-trade has proven its effectiveness in the US through the acid rain program, where it quickly and effectively reduced pollution levels at a far lower cost than expected.
work cited
Source: International Emissions Trading Association. “Why Emissions Trading is More Effective Than a Carbon Tax.”
Question (3)
This key principle that shapes neo-Keynesian economic policies is that they tend to focus on increasing government spending, with the belief that such investment will lead to increased aggregate consumer demand. With their focus on demand-led economic growth, neo-Keynesians give little attention to the “supply-side” of the economy, or the factors that directly influence what producers do. In a neo-Keynesian’s view, policies, such as costly regulations, that might negatively impact the supply-side have little effect on overall economic growth. For this reason, they are more willing to support direct government regulation of economic activity. According to neo Keynesians, if companies think consumer demand is increasing, they will have an incentive to invest more; they contend that government can do little to directly spur more growth, other than ensure high levels of aggregate demand
According to Atkinson and Hackler two of the three arguments made by Neo-Keynesian doctrine which also states that economic policies are designed to maximize not efficiency, but social welfare. A market based economy is more sustainable if there is an equitable distribution of wealth. They say an equitable distribution of wealth lead to greater consumption because low and moderate income individuals have the potential to consume more which lead economic growth.
Question (1)
According to Atkinson and Hackler the most effective policy of the neoclassical economists believe that setting a price on carbon through a carbon tax or cap, that is that once the price is right, the market will respond appropriately and develop the needed technologies. Another policy of the neoclassical economist is that green house gases emitters (GHG) should be charge the full cost of the emissions.
Question(2)
The assumptions made by the authors in neoclassical economics is that most only care how a particular market performs. These markets make people think that techonology is not that far behind. The theory is that if a good performing stock of a science/technology should also have promise in technology. That is just the a true because it takes real vision and science behind real breakthorugh. No tech company was successful only if its stock was tied to how the company performs. It usually takes a technology company years or decades to see an viable results. This is why the assumption is false to think it is realistic.
Question(3)
One argument for noe-Keynesian economics is that must be supply equals demand across all markets in the economy. The second argument for neo-Keynesian economics would be One is that the economy is built upon the interaction of firms and consumers in markets determined by price signals. Which means that the focus is on rates in the stock market or rates in the home mortgage sector instead of focusing on technology to further advancement. The most effective of the neo-Keynesian economics has to be to evenly distribute the wealth around that would cause no real technology innovation.
Dao Zheng Li
2/29/16
3. Is consumerism is tied to a “natural human urge,” a way of “structuring human life,” or is it condition?
I think the consumerism is tied to a “natural human urge.” Because most of the people in the society want to live better and want to own the good product. Like the IPhone, many of people want to have the new model, even some people do not earn that much money they still go to buy the update one. So when people get rich, they want their life live better, they spend a lot of money on housing, food, car, and travelling. Even the people do not earn that much money, when the product on sale, they are also like to spend the money to buy what they want to own. Consumerism also can stimulate the economy development. Since 2008, the government set up the polices for stimulating the economy likes no sale tax on clothing product under $110 for motivating people go shopping to bring the economy goes up.
3. Is consumerism tied to a “natural human urge,” a way of “structuring human life,” or is it condition?
Consumerism is a sick condition. Peoples lives now rotate around material objects instead of caring about relationships and one another. This bombardment of advertising is distracting us from real issues going on today. People follow updates on sneaker releases instead of following current events. Addiction is a good word to describe consumerism. People get a high from spending money on frivolous items. If someone only talks and cares about materialistic stuff, they have no personality and they need help. Producing these products that we all love so much doesn’t help the environment or the people who produce them. Horrible working conditions and meager wages are abusing fellow human beings. Stop buying from companies that are known for exploiting those who are most vulnerable.